TYRE RetreadingLatin AMERICA

THE TIRE COLOGNE 2018

Recent figures and developments

by

Who`s ALARNEU?

Latin American Tyre

Retreading Association

Your speaker … Leandro RigonFinance Director at ALARNEU

International Business Director at VIPAL RUBBER

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a bit of history

• Evidences of retreading activity from the 30s’ in Argentina and Brazil

(hot cure PCT & LT)

• Company profile - family business

• Back in time many imports from Europe

• 80s’ – cold cure migration3

share

85%

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2017 figures

RETREADING PRODUCTION• 11.7 M – commercial tyres

• 5 M - small tyres• 530 K - OTR tyres

• 2040 shops• Retreadability LATAM -

from 0.20 to 1.80

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threats

• Indiscriminate and uncontrolled imports ofcheap tyres

• Direct sales from factories in China to fleets

• Tyre prices at end user very close to retreads(120% aver.)

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coml. tyres five years

Million tyres - Y

-21-21

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import certifications and/or coml

barriers

• Antidumping and countervailing duties

• Certifications by local authorities

• Supplier facilities inspection and product homologation

• Import ban for used and retreaded tyres8

retreading certifications

• Retreading shops

– Regulative procedures such as factory inspections,

product verifications, fatigue test…

• Material suppliers

– Product certification by local governmental

testing institutes – cushion gum

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mandatory

• ARGENTINA – Tyres to be followed from beginning to the final disposition through retreading. Nowadays retreading is second priority after any kind of re-use.

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mandatory

• BRAZIL – Local industry and importers are required to collect all end of life tyres and give it a final disposition (ruled by the local environmental institute).

• Yet, if the tyre can be reused it should follow the retreading program, before.

• Green Label – considered as green product by the Brazilian Technical Standards Association (ABNT)

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mandatory

• CHILE – Work in progress with government for end of life tyres program

• LEY REP – Agreement for ¨clean production¨between ARNEC and the Chilean Sustainability and Climate Change Agency.

• Carbon foot print study12

mandatory

• COLOMBIA• Retreading is first option at the disposition

program

• Updating the technical regulations for retreads. Green label also will be available.

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mandatory

• COSTA RICA – comprehensive waste management law, defining final disposition for end of life tyres.

• Import ban for used and retreaded tyres

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mandatory

• ECUADOR - tyre import companies are

subjected to a retreading plan.

60% from all imports must be retreaded.

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mandatory

• URUGUAY – All imports to be enrolled in

an end of life disposition plan thought retreading.

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GRACIAS!OBRIGADO!

THE TIRE COLOGNE 2018